To manage your debt more efficiently, make a plan to pay off non-tax deductible and high interest loans as quickly as possible.
In particular, watch out for:
• Credit Cards: If you use your credit cards as a loan, you could be paying very high interest rates. This quickly becomes a financial burden. If you only make the minimum monthly payment required, you eventually end up owing much more. Try to pay off the credit cards with the highest interest rates first. And, don’t be afraid to call your credit card company and simply ask for a lower rate!
• Interest-Free Loans: These loans look tempting when you don’t have cash to spare. But, they can turn around and bite you after the “interest-free” period expires. You may have to pay interest backdated to the day you purchased. Check the terms and conditions on these types of offers very carefully.